ISA investing: I plan to hold these UK shares I bought in 2020 for 10 years!

I bought all of these cracking UK shares for my Stocks and Shares ISA in 2020. Here’s why I reckon they’ll make me robust returns in the years ahead.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The worst public health emergency for a century has heaped unprecedented strain on the global economy. It’s meant that UK share investors like me have had to be extra careful before buying for their stocks portfolios. 2020 saw swathes of corporate casualties and a legion of British stocks cutting their dividends in response to the crisis.

The enduring pandemic means that more pain could be in store. However, it doesn’t mean that UK share investors need to run for the hills. At least, not in my opinion. I’ve continued to build my Stocks and Shares ISA over the past year despite Covid-19. I don’t just expect these British stocks to provide brilliant returns over the near term. I reckon they’ll make me a lot of money through the next decade at least.

#1: Animal magic

I bought shares in CVS Group a year ago as a play on the booming animal care market. The amount people spend on their furry friends has proved remarkably resilient despite the Covid-19 pandemic. If anything spending in this area has risen as pet adoption rates have recently soared. Veterinary care provider CVS’s interims this week showed like-for-like revenues leap 8.2% between July and February. Promisingly the business has considerable balance sheet strength to keep expanding at a swift pace to make the most of this enormous market. There is a shortage of veterinary surgeons and nurses in the UK which could constrain future profits growth at the business, though.

Cute dog in funny colourful jester cap.

#2: A top UK logistics share

Clipper Logistics is another UK share I bought in 2020 as the public health emergency took off. With lockdowns dragging on it became clear that impressive e-commerce growth rates in recent years were headed to the stars. This played into the hands of logistics specialists like Clipper which provides an array of services to retailers. Indeed, revenues at this particular operator soared 50% year-on-year in the months of November and December. I’m backing online shopping activity to keep ballooning as technological improvements and heavy multichannel investment by retailers enhances recent consumer trends. Bear in mind, though, that an online sales tax being considered by the British government could significantly hamper demand growth at Clipper Logistics.

#3: A brilliant emerging markets play

I think that owning companies that operate in emerging markets is essential for any stocks portfolio. A combination of soaring population growth and rocketing personal wealth levels provides a wealth of opportunity for UK share investors like me. I chose to bulk up my own exposure in this area by buying shares in Prudential two Januarys ago. This FTSE 100 life insurance giant’s tentacles cover large parts of Asia and the company’s profits here surged 13% in 2020. Analysts at GlobalData expect the life market in this part of the world to keep swelling, too. They reckon written premiums in Asia will grow to $1.5trn in 2023 from $1.2trn in 2019. It’s important to remember, however, that ‘The Pru’ operates in competitive markets and that some of its rivals have greater scale with which to grab customers.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild owns shares of Clipper Logistics, CVS Group, and Prudential. The Motley Fool UK has recommended Clipper Logistics and Prudential. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

US Stock

The Nvidia share price falls! Here’s what I think happens next for the S&P 500

Jon Smith reviews the overnight results from Nvidia and explains why this could stall the S&P 500 performance through to…

Read more »

Investing Articles

Down 15% today, is this FTSE 100 share too cheap for me to miss?

JD Sports' share price has tanked after the FTSE 100 share released another profit warning. Is this the opportunity I've…

Read more »

Investing Articles

Up 8% today, is this FTSE 100 growth stock a slam-dunk buy for me?

Halma's share price is soaring thanks to another headline-grabbing trading update. Is the FTSE 100 stock now too good for…

Read more »

Investing Articles

With a P/E ratio of just 10.5 is now a brilliant time to buy a cut-price FTSE 250 tracker?

Harvey Jones says a recent dip in the FTSE 250 leaves the index trading at bargain levels. One stock in…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

To build a passive income flow, I’d follow this Warren Buffett approach

Warren Buffett has set up passive income streams most people can only dream about. Our writer sees some practical lessons…

Read more »

Growth Shares

As the boohoo share price falls, could it become a penny stock in 2025?

Jon Smith outlines some of the recent problems involving the boohoo share price and considers if things could get even…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

Here are the worst-performing FTSE 100 shares over the last 5 years

These five FTSE 100 shares have been complete duds over the last half decade. But is there potential for a…

Read more »

Investing Articles

Nvidia stock has tripled this year! Can it keep rising?

Nvidia's latest sales update showed strong growth and the stock's been on a tear so far in 2024. So is…

Read more »